Diamond’s Strategies: Customer Focus, Tech Investment, and Market Expansion
Diamond’s Customer-Centric Approach
Diamond is a customer-focused organization that prioritizes service excellence. By focusing on customer service and its quality, Diamond aims to establish customer satisfaction and loyalty, ultimately driving sales and profit growth.
To enhance customer service quality and satisfaction, Diamond has established the Service Development Section and Customer Care Department. The Service Development Section focuses on enhancing the customer experience of mobile and web-based services, while the Customer Care section ensures that customer expectations are consistently met. Both departments aim to provide customers with excellent services.
Technology and Innovation at Diamond
Diamond is driven by technology and aspires to drive technological advancements. Investing in technology provides Diamond with a competitive edge, enabling the development of new products and expansion into larger markets.
Diamond continues to invest in innovative products and market research, successfully identifying market trends and leveraging the latest technological developments to satisfy customer needs. The Special Projects section requires significant investment and provides the leading-edge technology required for mobile and other ventures.
Diamond’s Financing Strategies
Issuing Shares
Issuing shares is a financing method that Diamond can use to access capital. It can meet a portion of Diamond’s capital needs during its expansion, although the amount of share capital issued will be limited to the authorized share capital amount.
Issuing Debentures
Issuing debentures is another useful financing method. Debentures are loans made to companies that carry a fixed rate of interest. Debenture holders need to be repaid the principal on time but do not participate in the company’s operations like shareholders.
Shares vs. Debentures
While both issuing shares and debentures are appropriate for Diamond, there are key differences. Shareholders have control rights within the company, while debenture holders do not. Debenture holders must be repaid the principal on time, which is not necessary for shareholders.
Shareholders benefit from dividends, while debenture holders benefit from interest payments.
Financial Performance and Dividends
Turnover, profit, costs, dividends, and earnings per share reflect a company’s effectiveness. Diamond has invested heavily in research and development and specialized production facilities, leading to significant costs. Downward pressure on prices has resulted in lower profit margins and a reduced rate of growth in turnover.
Dividends directly affect shareholders’ benefits, determining investment repayments and investor willingness to continue investing. Diamond’s increasing dividend and earnings per share attract potential shareholders and encourage existing shareholders to invest more, which is essential for finance and expansion.
Diamond’s Expansion into the Chinese Market
China, the largest global telecommunications market, provides Diamond with an unrivaled opportunity for growth. The size of China’s population offers significant room for massive expansion.
Short-Term Profitability Challenges
Diamond’s profitability may not grow rapidly in the short term. China is an emerging market with severe competition from numerous foreign manufacturers and network providers. Diamond needs to invest significantly in the new market, and recouping these costs may take time.
Entering the new market may require Diamond to address a significant funding gap, incurring substantial capital financing costs.
Low-price competition may also impact short-term profitability. To gain market share and coverage in the intense competition, Diamond may choose to lower prices initially.